Consider the Specific Factors model studied in class (all the standard assumptions hold). There are many countries, two commodities (Cars and Soy), two specific factors (Machines and Tractors) and one mobile factor (Labor). The production of Cars (C) uses labor (Lc) and Machines (M), while the production of Soy uses Tractors (T) and Labor (Ls). Consider the "small" country of Islandia that is relatively Machine abundant (i.e. M/T > (M/T) rest of the world Answer the following questions. Justify fully. Use a diagram or an equation when you are able to do SO. Free trade: Suppose Islandia is trading freely at fixed world prices. (1) (6 pts) Draw a diagram where you show plausible production and consumption points under autarky and under free trade (use the horizontal axis for Cars).Effects of a decrease in the available number of Tractors under Free Trade Assume now that the amount of available Tractors decreases due to a flood and the country continues to trade freely at fixed world prices (4) (16) Evaluate the effects of the this decrease on the following: (a) allocation of Labor among the two sectors of production , (b) production of Cars and Soy, (c) real returns of Machine owners